can someone explain why property taxes are tied to the value of the home?

[BlahBlahYouToo]

never mind that I think property taxes should be illegal... that's another thread.

but why on earth would they be tied to the value to my home?
does the value of my home have to do with how much social services I will consume?
If the value of my home goes up, do I automatically start having more kids that will go to school?
does crime go up and I will require more police protection?

 

[HendrixFan]

Same reason income tax is a percentage and not a flat fee.

 

[SlitheryDee]

Tax is tied to your personal wealth. Your home and it's value are part of that. I'm not saying it's right but...

 

[glenn1]

can someone explain why property taxes are tied to the value of the home?

Since property taxes primarily fund education, they're tied to home values so you can have good schools while the ghetto kids make due with their shitty ones.

 

[woodie1]

never mind that I think property taxes should be illegal... that's another thread.

but why on earth would they be tied to the value to my home?
does the value of my home have to do with how much social services I will consume?
If the value of my home goes up, do I automatically start having more kids that will go to school?
does crime go up and I will require more police protection?

Yes.

 

[DCal430]

Half of my property tax is NOT tied to my home value. Sucks because you can't deduct it on your taxes. I have relatives who less than 1/4 of their property tax is tied to their home value, so most of property tax can't be deducted.

 

[Capt Caveman]

Illegal? It's probably the most fair of the taxes we have.

 

[boomhower]

Since property taxes primarily fund education, they're tied to home values so you can have good schools while the ghetto kids make due with their shitty ones.

A LOT of areas don't work like that anymore. They have different terms in different areas but the end result is low income kids can go to the good schools and vice versa. It's like that in my area. Kids are bused all over the city, some win and some lose. One of my co-workers lives three blocks from a good school and his kids are bused across town to a not so good school.

 

[Pulsar]

Property values rise and fall with the economy and are usually a solid indicator of the state of the economy.

As such, they are an effective way to tax individuals and have a very solid income because they change fairly slowly.

States that have gone to a sales-tax method of funding themselves have seen huge fluctuations as the economy has tanked. That's resulted in more than a couple near-bankruptcies.

Of course, the housing bubble caused by blatent bank speculation and deregulation smashed the usually-safe housing market.

 

[Insomniator]

You should be more angry that they probably appraise your house for 20% more than you could ever get for it!

My grandmas house was appraised at like 320 or something ridiculous... they gave her a deal for 280 after some complaining but the house is probably worth more like 260.

 

[Bignate603]

You should be more angry that they probably appraise your house for 20% more than you could ever get for it!

My grandmas house was appraised at like 320 or something ridiculous... they gave her a deal for 280 after some complaining but the house is probably worth more like 260.

Usually I've seen it happen the other way around, with the property tax appraisal being far under the fair market value of the house.

 

[Jeeebus]

property taxes are tied to the value of your home in name only. The state/city knows what it wants to squeeze out of you, and is more than happy to adjust the taxes accordingly to make sure they get it.

I remember when we were in Virginia 2005 - 2010 and thinking to myself - well, it sucks my home has lost half its value, but at least I'll save on my property taxes. Wrong. Assholes just increased the tax % rate on everyone so the state was still making roughly the same.

 

[arkcom]

You should be more angry that they probably appraise your house for 20% more than you could ever get for it!

My grandmas house was appraised at like 320 or something ridiculous... they gave her a deal for 280 after some complaining but the house is probably worth more like 260.

I paid paid $20k for my house (that's about what its worth). The county appraised it at $120k. They're nuts.

 

[FoBoT]

same reason so many believe in 'progressive' tax rates, where you have to pay a higher rate if you make more $

they say it is only 'fair' to stick it to the filthy rich scum

 

[HardcoreRobot]

if you have more, you owe society more

at least thats how all the taxation feels

 

[Greenman]

Illegal? It's probably the most fair of the taxes we have.

Some people still think they actually own their property, a foolish notion at best.

 

[unokitty]

Since property taxes primarily fund education, they're tied to home values so you can have good schools while the ghetto kids make due with their shitty ones.

I believe that the Federal Courts have ruled the above statement violates the Federal Equal Opportunity mandates...

But on a more global note:

"The tax system in the United States is designed to be progressive, meaning that higher incomes are asked to pay a larger percentage in taxes."

Of course, since many people don't pay any income taxes, your local governments have property taxes as a way to fund local services (such as schools). [1]

For example, in 2009 only 51% of the population paid any Federal Income Taxes.

If you think that that sucks, you are not alone.

Uno

 

[lxskllr]

Illegal? It's probably the most fair of the taxes we have.

There's nothing fair about it. You could own a low rent shithole for years, and have property values price you out of a house you already paid for.

 

[Zargon]

Usually I've seen it happen the other way around, with the property tax appraisal being far under the fair market value of the house.

the difference between my assessed value and the appraised value is around 12%, with the appraisal being higher. its assessed for less than I paid for it

I believe that the Federal Courts have ruled the above statement violates the Federal Equal Opportunity mandates...

beats me, my community is twin cites. one started doing bussing all over the place. that didnt last more than a few years till they stopped alot of it. let kids finish out where they were

 

[DCal430]

There's nothing fair about it. You could own a low rent shithole for years, and have property values price you out of a house you already paid for.

The problem with doing a cap like California Prop 13, is that locals now have to use flat or square feet taxes, which are not deductible on federal income taxes. Imagine paying 10,000 a years in property taxes only to be told that you can only deduct 2,000 of it on your income tax, that is what is happening to people in California.

 

[Ausm]

Illegal? It's probably the most fair of the taxes we have.

^^ Unless your Grover Norquist.

 

[PingSpike]

same reason so many believe in 'progressive' tax rates, where you have to pay a higher rate if you make more $

they say it is only 'fair' to stick it to the filthy rich scum

I thought it was because poor people don't have any money to take.

 

[rh71]

One of my co-workers lives three blocks from a good school and his kids are bused across town to a not so good school.

What? How is that determined? We have a big argument on LI because we don't have centralized schools but rather one school district for each of the ~100 towns. This results in a huge tax burden because of all the administration & levels of government involved, and they make over 6 figures each. People were talking about centralizing schools and kids would be bussed all over the place. Of course none of the good-school parents want that... the whole point of moving here was for the certain good school districts. Paying high taxes is really so you can keep your district nicer than the others.

Seems some places like NoVA have centralized schools that still do well - it's working out ok for them. I wonder if it really relieved their tax burden though.

 

[rivan]

Some people still think they actually own their property, a foolish notion at best.

Relying on yourself and your neighbors to maintain roads and emergency services to that property proved to be less than reliable over time.

 

[fatpat268]

Usually I've seen it happen the other way around, with the property tax appraisal being far under the fair market value of the house.

Really? I've never seen that.

Property taxes are mostly fair, the only unfairness is that they can raise your taxes with little justification by rasing the tax appraisal for no real reason.